FEEDLOTS
The
production cycle of the beef industry has changed over the past 30
years with the introduction of feedlots. Feedlots are defined as 'a
confined yard area with watering and feeding facilities where cattle
are completely hand fed or mechanically fed for the purpose of
production'.
Feedlots made their first appearance in the USA
in the 1920s but it was not until the 1950s that Australia began
experimenting with the concept. In the mid-1960s commercial
feedlotting started on the Darling Downs in Queensland. This industry
within an industry was born out of a demand from overseas customers,
for a specifically tailored, consistently high quality, year round
product.
Traditionally, Australian consumers have preferred
leaner beef while some markets, especially the Japanese, prefer high
levels of marbling in their beef. To meet these requirements, along
with a growing domestic demand, cattle raised on pastures are
'finished' on a highly nutritious diet of grain feed prior to
slaughter or live export. Barley and sorghum are the most common
grains used. Cattle stay on this feed for periods varying from about
30 days up to about 300 days depending on the level of marbling and
weight required by the particular customer.
Despite a setback
to its evolution in 1975, when access to the Japanese market closed
temporarily, the feedlot industry in Australia had grown to 830
feedlots by 1996 when accreditation first commenced. Since then, a
significant number of mainly small lots have ceased operations or not
achieved nor sought accreditation. As a result, the number of
accredited feedlots was down to 710 by June 2000 and down further to
575 by March 2004. It is expected that over the next year or two this
figure will increase slightly and eventually stabilise at about the
600 mark.
In contrast to the declining number of feedlots,
total feedlot carrying capacity had risen to a record high of 926,000
head as at 31 March 2004. Numbers on-feed were reported to be 666,000
head (72% of total carrying capacity), nearly half of which was in
Queensland and over a third in New South Wales. Of total capacity,
55% was held by 23 feedlots, each with a licensed capacity of 10,000
head or more. At the other extreme, 17% was held by about 481
feedlots, each with a licensed capacity of less than 1,000
head.
Most of the cattle being held on feedlots at 31 March
2004 were destined for the Japanese market (which was expected to
consume 356,000 head or 53% of available supply). The next biggest
market was the domestic market (which was expected to consume around
249,000 head or 37% of available supply).